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How Much Should You Spend on Facebook Ads? A Simple Budget Guide
- SellToStrangers™
- 2 days ago
- 5 min read
One of the first questions almost every new advertiser asks is:
“How much should I spend on Facebook Ads?”
RM20 a day? RM50? RM100?
The problem is that there isn't one Facebook Ads budget that works for every business.
A business trying to generate RM5,000 per month shouldn't be using the same advertising budget as one targeting RM100,000.
Instead of choosing a random number, you can work backwards from the result you actually want.
And we've built a free Facebook Ads Budget Calculator to help you do exactly that.
Your Facebook Ads Budget Should Start With Your Goal
A common beginner approach looks something like this:
Open Facebook Ads Manager.
Create a campaign.
Facebook asks for your daily budget.
You enter RM20/day because it feels affordable.
Then you wait.
The problem isn't necessarily that RM20 is too low.
The problem is that there's no relationship between that RM20 and the result you're expecting.
Instead, start with:
How much revenue do I want Facebook Ads to help generate?
Then work backwards.
The Simple Facebook Ads Budget Formula
One of the easiest ways to estimate your required advertising budget is:
Revenue Target ÷ Target ROAS = Estimated Ad Spend
ROAS stands for Return on Ad Spend.
If you spend RM1 on advertising and generate RM4 in sales, your ROAS is:
4x ROAS
So imagine your goal is to generate:
RM20,000 in monthly revenue
And you're planning around a:
4x ROAS
Your calculation would be:
RM20,000 ÷ 4 = RM5,000
That gives you an estimated monthly Facebook Ads budget of:
RM5,000 per month
Which works out to approximately:
RM167 per day
Suddenly, your budget isn't just a random number.
It's connected to a business objective.
Use Our Free Facebook Ads Budget Calculator
You don't need to calculate everything manually.
Our Facebook Ads Budget Calculator lets you enter your numbers and quickly estimate how much advertising budget you may need.
For example, let's say you want:
RM30,000 monthly revenue
And you're targeting:
3x ROAS
Your estimated advertising budget would be:
RM10,000 per month
Or approximately:
RM333 per day
You can then change the revenue target or ROAS to see how your required budget changes.
Try Your Own Numbers
Enter your revenue target, adjust your expected ROAS and use the result as a starting point for planning your campaigns.
Does Spending RM10,000 Guarantee RM30,000 in Sales?
No.
This is one of the most important things to understand about Facebook Ads.
A budget calculator helps you plan the numbers.
It doesn't guarantee the result.
If your target is RM30,000 at 3x ROAS, spending RM10,000 simply tells you what would need to happen mathematically for that goal to be achieved.
Your actual performance will still depend on things like:
Your product or service
Your offer
Your Facebook Ads creative
Your audience
Your website
Your landing page
Your pricing
Your conversion rate
Your campaign setup
Think of your budget as fuel.
More fuel doesn't necessarily fix a car that isn't running properly.
The same applies to advertising.
What If You Only Have RM20 or RM30 Per Day?
That's fine too.
You can work backwards in the opposite direction.
Imagine your budget is:
RM30 per day
That's approximately:
RM900 per month
If you were eventually able to achieve a 3x ROAS, that would correspond to:
RM2,700 in attributed revenue
RM900 × 3 = RM2,700.
This doesn't mean Facebook will automatically produce RM2,700.
Instead, it gives you a benchmark.
You now know what kind of performance you're trying to achieve with the amount you're willing to invest.
For a new advertiser, the first objective may also be learning.
Which creatives get clicks?
Which offers get attention?
Are people visiting your product page?
Are they adding to cart?
Are they reaching checkout?
Are they purchasing?
Those numbers tell you much more than simply asking whether Facebook Ads "worked."
How Much Should a Beginner Spend on Facebook Ads?
There isn't a universal number.
Instead, ask yourself three questions:
1. What can I realistically afford to test?
Don't build your entire strategy around money your business can't comfortably allocate to marketing.
2. What result am I trying to achieve?
RM5,000 in revenue?
RM20,000?
RM100,000?
The target changes the amount of advertising required.
3. What ROAS does my business actually need?
A 2x ROAS might be profitable for one business and terrible for another.
Your product margins matter.
If you sell something for RM100 but only have RM30 left after product costs, fulfilment, fees and other variable expenses, you have much less room to spend acquiring a customer.
That's why understanding your numbers comes before scaling your ads.
Don't Just Increase Your Budget Because an Ad Is Working
Suppose you're currently spending:
RM100/day
And generating around:
RM400/day in sales.
That's roughly:
4x ROAS.
It can be tempting to immediately increase the campaign to RM1,000 per day.
But advertising doesn't always scale perfectly.
Your audience may change as Facebook needs to find more customers.
Your best-performing creative may eventually become less effective.
Your cost per purchase can increase.
Your website conversion rate can fluctuate.
Instead of assuming that:
RM100 → RM400
therefore:
RM1,000 → RM4,000
increase your budget while continuing to watch your actual performance.
The Numbers You Should Watch
Your advertising budget doesn't exist by itself.
Think of your Facebook Ads campaign as a funnel:
Impressions
↓
Clicks
↓
Landing Page Views
↓
Add to Carts
↓
Initiate Checkouts
↓
Purchases
If your campaign isn't producing enough sales, you can start asking where people are dropping off.
Lots of impressions but very few clicks?
Your creative or offer might need work.
Lots of clicks but almost no add to carts?
Look at the product page.
Lots of add to carts but few purchases?
Investigate the checkout experience, pricing, shipping costs, trust and offer.
This is much more useful than simply increasing your daily budget and hoping sales appear.
Plan Your Facebook Ads Budget Before You Spend
Facebook Ads becomes much easier to understand when you stop thinking:
“How much money should I give Facebook?”
And start thinking:
“What result am I trying to generate, and what numbers would need to happen to reach it?”
Your budget is simply one part of that equation.
That's exactly why we created our free calculator.
Calculate Your Facebook Ads Budget
Enter your numbers and get an estimated monthly and daily advertising budget based on the revenue you're trying to achieve.
No guessing.
Start with the numbers.
Then build the campaign around them.
Want to Learn How to Actually Run the Ads?
Knowing your budget is only the beginning.
You still need to know how to:
Choose the right campaign setup.
Create ads people actually stop and look at.
Reach potential customers.
Retarget people who don't purchase immediately.
Understand your campaign metrics.
And know what to change when your ads aren't performing.
That's what I teach inside Facebook Ads Mastery.
If you're still learning Facebook Ads and want a step-by-step system rather than figuring everything out through trial and error:
Start with the free calculator first.
Then, when you're ready, learn how to build the campaigns behind the numbers.
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